Blockchain technology has opened a new horizon in the world of video games.

You have probably ever heard of Blockchain, the blockchain-based technology that was known mainly for its use in cryptocurrency networks, and that has been making its way into a wide range of industries, enabling innovative solutions. But did you know that this technology is also transforming the gaming industry?

In previous blog notes we have talked about the importance of the blockchain and its potential impact. This time we will focus on some of the most common ways that blockchain technology can influence the gaming industry, resolving some problems and making games more immersive than ever.

As a native digital sector, video games base their evolution on the pace and advances of technological innovation. Still, there are technological barriers within the sector that hold back its progress. However, blockchain technology can play a very relevant role here, causing a revolution in the way games are created and the role played by the player.

The gaming industry today

The gaming sector has grown a lot in recent years. According to Newzoo, the world’s leading provider of e-sports and gaming analytics, in 2021, 2.8 billion gamers worldwide will help the global gaming market generate revenue of $ 189.3 billion.

As the gaming industry continues to grow, the main issues that have arisen are the lack of transparency and trust between game developers and gamers. This is due to the fact that nowadays the vast majority of online games follow a centralized model. This means that all data relating to the games is stored on a server fully controlled by the game developers.

This data typically includes account information and server history, as well as internal game assets gathered by players (for example, collectibles, items, and virtual money). Hence, players are not in actual possession of their accounts and items. Also, centralized servers have some limitations and are vulnerable to manipulation and hacking.

This is where the Blockchain comes in. The potential of this technology is its ability to store information throughout the entire internet, in a decentralized and distributed way. This means that no company or person owns this system, but anyone can use it and collaborate with. This makes it very difficult to hack or corrupt.

Why do games need blockchain?

One of the essential features of blockchain applications is the existence of tokens that involve transactions of digital elements between users of the network, but not necessarily of money.

This is precisely where the value of blockchain in the world of videogames becomes evident, since for a long time videogames have become experiences shared with others, associated with an ecosystem of network players.

In this way, chains bring two forms of value to games. On one hand, they offer the possibility of exchanging digital assets between the different games, and on the other, they allow bartering of said assets between players.

According to a survey by Worldwide Asset eXchange (WAX), the world’s leading decentralized gaming and entertainment network, 62% of gamers would be more likely to invest in digital assets if they were transferable between games; 84% of developers would create in-game items for the same reasons.

So what are the advantages of blockchain for both operators and players?

This technology solves some of the main problems in the gaming industry today:

1) Integrated gaming profiles. By creating a game on the blockchain network, players can carry the unique public addresses from one game to another, transacting with their cryptocurrency from the same public address in different games. In other words, you can enter a unique and integrated gaming profile that allows you to operate through the gaming portals.

2) Secure investments in games. Link assets to players, rather than games, thus protecting the investments of time / money that players have made, regardless of the developer’s decisions. Blockchain grants immutable ownership of game items, solving item theft due to piracy and the sale of fake in-game assets.

3) Decentralized storage. Blockchain gaming platforms will allow decentralized storage of data and resources. This improves the security of game assets and resources. As the centralized servers do not maintain the resources, the resources in the game channel are made piracy proof. Players and developers can earn native cryptocurrencies or tokens and store them in wallets.

4) Resource trading and rewards. Gamers and developers can create their feature-packed resources, game apps, upgrades, and earn rewards for the mining process on blockchain gaming platforms. Players can collaborate with technical experts to enrich the application user experience and earn the tokens. The gaming community can also exchange their in-game assets in exchange for fiat currencies or cryptocurrencies.

5) Control over favorite game apps. Protect players from undesirable actions by creators; Players can take the wheel, extend the longevity of the game, and encourage user content.

6) Community governance. Incentivize players by offering dividends and giving them a vote in development processes.

7) Globalized payments. Blockchain gaming applications can be enriched with native crypto tokens or other popular tokens for transactions. Players can buy the tokens with different payment options such as credit or debit cards, bank transfers, cryptocurrencies, PayPal, etc. As transactions are reconciled in real time, fraudulent transactions can be easily prevented on blockchain gaming platforms. This allows creating more realistic economic systems within games and restoring trust between game developers and distributors by recording sales on a blockchain.

In short, blockchain technology has great potential in the gaming industry. It provides significant improvements for gamers and developers, especially when it comes to decentralization, transparency, and interoperability.

How to get the most out of this technology in the gaming sector? Let’s join forces to enhance the next generation gaming experience!

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